For any tech company in today’s information age economy, a lot rides on the company’s reputation to protect the data entrusted to it. People often input important personal information into various websites on the Internet; this can range from something innocent like names and birthdates to potentially damaging data like credit card and Social Security numbers. Moreover, private businesses often collect this information for their own use – something that data thieves can take advantage of.
An excellent example of how big a problem a data breach can be for a company was last year’s Target data breach. One of America’s largest corporations, Target had access to the debit and credit card data of over 40 million customers and an additional 70 million PIN numbers and e-mails – and hackers stole it all. In the end it cost the company over $61 million. Now imagine your company having to pay that amount. Admittedly, most data breaches cost $188 per customer’s data stolen as per a 2012 study and these data thefts usually clock in at fewer than 100,000 customer records. That is still a large amount of money at the end of the day.
Thankfully, there are insurance policies being offered to help companies in situations like this. Cyber-risk insurance can help cover the investigation, additional customer service, and legal expenses that are part of picking up the pieces after a data breach. Target’s policy managed to pick up $44 million of the bill after their breach. Consider getting one to provide sufficient protection for you company.